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Tuesday, December 29, 2015

America to Lose #1 Spot-Are New Economic Theories Needed?

Are seismic economic shifts of power on the way?According to the UK based Center for Economics and Business Research the U.S. and Europe will be declining in power and economic status. Central Asia will grow in strength leaving behind many of its previous Western mentors.

The first problem we as Americans face is the assumption that we will stay in power because we are American. The past doesn't always predict the future and without change we become stagnant in our thoughts and activities. The worst mistake we can make is to assume that doing the same thing will result in something new.

Our political leaders are trying to grapple important issues such budgets, higher education, civil rights and immigration but are more focused on party positioning than resolving these issues once and for all. Larger economic change has yet to occur as we fail to grasp fundamental issues that draw today's attention.

America's economic models and assumptions will need to change if they are going to increase economic activity and ensure the country stays in the leading position over the course of the next few decades. The same rehashing of previous theories only encourages small improvements within existing frameworks.

To change our economy means we need to change our vantage point. We will need a paradigm shift that moves us from domestic oriented theories to international ones that better reflect the reality we live in. The world will become ever more interconnected and we have not yet embraced it.

There are current holes in how we approach the economy and we have been relying on outdated models that are leaving the nation in a weaker position every year. Even though some movement has been made with treaties and international exchange we have not yet grasped the idea that American should be the central place for creation and investment.

We are no longer low cost producers and will need to become superusers of world resources to turn out market leading products. America was built off of our innovative spirit and we have created complex layers of bureaucracy that have killed that spirit. It is time to roll up our sleeves, drop politics and make meaningful change.

We must embrace the international environment, encourage new economic models, and lead the international economy through a stronger global engagement. Without truly fixing the fundamentals of our economy we will constantly be seeking some program or another to create small and futile fixes. America is large and by enhancing our regional capacities and putting them into a nation and international context can create meaningful in sites for improvement.